Thursday, February 18, 2016

Natural Gas (UNG): Fool me once....

I've been burned several times in the past by the Natural Gas (UNG). The Natural Gas market is a strange and cruel mistress that takes the hearts of men (and woman) and does whatever she pleases. Recently however, and now remember she does owe me a few, a bullish descending wedge was put in on the daily chart. Additionally, we are at the level of the low water mark in December ($6.90) so perhaps a double bottom has emerged? To have a bullish pattern emerge at this level I find all too convenient.
This is a play that I think is only good for a short-term move because Natural Gas has been on a slide for such a long time, but I am genuinely eager about Natural Gas and the possibilities it holds for the future. A report recently stated that the developing world prefers Natural Gas for energy over coal fueled power stations which I think is a huge a environmental boost.